UP government extends MoU signed with nine companies to set up power projects

LUCKNOW: The Akhilesh Yadav government on Thursday gave an 18 months extension to 9 power projects for which MoU's were signed during the previous Mayawati regime but failed to take off.

All nine projects were stuck up due to lack of coal linkages something that the private developer had promised to arrange on their own.

They now expect the state government to push for their case with the central government for speedier allotment of coal mines. Atleast three of these nine projects also had issues related to insufficient land acquisition and water availability.

During the previous Mayawati government regime, 10 MoU's were signed with private players for setting up power plants with a total generation capacity of 10,970 MW. The MoU's were to expire after 18 months on 10 June 2012 and had a clause that the state government was entitled to seize the bank guarantee submitted by the private players if it failed to get all approvals and begin work on their project within the stipulated 18 months. The total bank guarantee deposited with the state government by these private players is Rs 500 crores.

But except one project of 450 MW by sugar major Bajaj Hindusthan none have been commissioned as yet.

The Infrastructure and Industrial Development Commissioner, Anil Kumar Gupta said "the main reason why these 9 projects remain stuck is the lack of coal linkages for which they are dependent on the central government. There is severe shortage of coal nationally and the government decided to give these private players another chance given the circumstances.

The MoU has been extended for another 18 months during which the private developers would try and get coal linkages and the government will take a call on these projects after the new deadline expires. We retain the right to seize the bank guarantee after the new deadline gets over".

He said that some developers had sought for an extension of upto 24 months but the government has agreed to extend the MoU by only 18 months.

The state cabinet also approved the change in location of three projects to facilitate water availability. Projects earlier approved for Barghar, Farrukhabad and Gazipur have now been relocated to Lalitpur, Barabnki and Mirzapur respectively.

The nine power projects which have been granted an extension of 18 months are- 1320 MW Bhognipur-I project being set up by Himawat Power Ltd; 1320 MW Bhognipur-II project of Lanco Infratech; 1980 MW Lalitpur-I of Bajaj Hindusthan; 1980 MW Lalitpur-II (earlier Bargadh) to be set up by Bajaj Hindusthan; 600 MW Murka to be developed by Creative Thermolite; 250 MW Barabanki (earlier Farrukhabad) of Parekh Aluminex; 250 MW Auriya of Unitech Power; 1320 MW Sandila of Torrent Power and 1320 MW Mirzapur (earlier Ghazipur) allotted to Welspun Power.

Only one project, Lalitpur-I being set up by Bajaj Hindusthan has made some progress on the ground and invested upto Rs 3,000 crores till date.

Anil Kumar Gupta said that the state faces acute shortage of power and there is an urgent need to augment production as soon as possible. The state government while giving an extension to these MoUs is also working on floating other projects to meet the states growing demand for electricity.